Secret to Financial independence
Financial independence is the ability to live from income of your own financial resources.
To start with, its good to note that sometimes its possible to be a good person but fail to be financially independent at an old age like 40 yrs old. Why? Because we fail to have a good plan and goals.
1. Set the right philosophy.
To set on sail towards financial independence, you need to set the right philosophies about your health, family relationships, friendships, economics and life.
There are a number of philosophies we can consider.
a) Philosophy of the poor.
The poor person always spend money and invest on what is left.
b) Philosophy of the rich.
A rich person invest all the money and spend what is left.
2. Use wisely what you have.
What would a child do with a hundred shilling note or a dollar or a rand or a pound? In my study, a wise father will teach his child not to spend the dollar. But this is what she must do with the dollar. Spend at most 70 cents, give ten cents to charity work like tithe, ten cents to worthy projects and active projects, projects that will earn some profit. Its best to start when young and even when you get a million dollars letter, you can still give the tithe. Remember profits are better than wages. The rest 10 cents, use it as passive capital. Capital you let someone else you. Could be a financial institution, stocks and bonds .. whatever. Let someone use then pay you an interest. The borrower is always a servicer for the lender and a wise kid should always say I want to be the lender, the one with power .
Many people always hate to pay bills or taxes. You need to realize that the system is like a goose and we all have to play our role to feed it. Don’t complain the goose is taking too much but do your part. Develop an attitude to always do your part. Pay the bills, reduce the liabilities and increase the assets.
I grew up in a small village near Eldoret in the middle of the the most beautiful country Kenya. Our farm was almost 20 km from the town to be exact. Early on, I found it strange how in Kenya people pretend to enjoy freedom. Living in debt, as most do, is not freedom. The good news is, I realized early on that freedom can easily be bought. Did you ever stop to think that you can literally buy your freedom from anyone? Amazing, isn’t it?! No one can control the financially independent.
I realized financial independence was my path when I was not even 10 years old. My dad would surprise me with a new chore to do on the farm. Each time he approached me, I immediately felt a brief, but very real, pang of anger. Had I thought of doing the task on my own, I would have happily milked the cattle, weed the passion fruit farm, pruned the trees … Are you this weird?
Growing up, I got a lot of flak for wanting to buy my freedom. Adults thought I worked too much (unless they needed my help, that is), kids nagged me to spend my money in silly ways. My siblings in particular called me cheap for not spending my paychecks in thoughtless ways. I imagine all us hearty financial independence seekers received some kind of punishment in the early years.
Finding a Mentor
I found a mentor early. At age 13, I found a cool guy who was doing all sorts of interesting stuff. He was Retired University Entrepreneur professor and chose early retirement to start 5 businesses. That’s how I met him. He was starting businesses, so at age 13, I created an sparse but well thought out resume and gave my future mentor a call. You don’t get what you don’t ask for.
He was frugal and showed me life what my future self could be like. I bet he’s spent more of his life as a millionaire than not. This guy was winning at life. He was someone I wanted to be around. Whether or not it was his intent, he clearly showed me how to be successful.